Crown Holdings Inc (CCK)

Crown Holdings, Inc.'s liquidity ratios indicate its ability to meet short-term obligations efficiently over the past five years. The current ratio has been relatively stable, ranging from 1.03 to 1.18, suggesting the company's current assets have generally been sufficient to cover its current liabilities. The highest current ratio was observed in 2022 at 1.18, indicating a stronger liquidity position compared to other years.

In terms of quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, Crown Holdings, Inc. has shown variability. The quick ratio has ranged from 0.61 to 0.77 over the five-year period. The highest quick ratio was recorded in 2023 at 0.77, reflecting an improvement in the company's ability to meet short-term obligations without relying on selling inventory.

Analyzing the cash ratio, which is the most conservative liquidity metric as it only considers cash and cash equivalents, Crown Holdings, Inc. has seen fluctuations. The cash ratio has ranged from 0.19 to 0.36, with 2023 showing the highest cash ratio at 0.36, indicating an increased ability to settle immediate debt obligations solely from available cash resources.

Overall, while Crown Holdings, Inc.'s liquidity ratios have shown some variability over the years, the company has generally maintained a satisfactory liquidity position. The increasing trend in the quick and cash ratios in recent years could imply an improvement in the company's ability to meet short-term obligations with more liquid assets.

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Additional liquidity measure

The cash conversion cycle for Crown Holdings, Inc. has fluctuated over the past five years. In 2023, the company's cash conversion cycle was 19.90 days, indicating that it took approximately 19.90 days for Crown Holdings to convert its resources and investments back into cash. This was a decrease from the previous year, when the cycle stood at 25.94 days.

Comparing to 2021, the cycle was longer in 2022, implying that Crown Holdings took longer to convert its investments into cash during the year. In 2021, the company had a relatively shorter cash conversion cycle of 13.38 days, indicating that it was more efficient in managing its cash flow and working capital. Furthermore, in 2020 and 2019, the cash conversion cycles were even shorter at 9.64 days and 7.99 days, respectively.

Overall, a shorter cash conversion cycle suggests that the company is efficiently managing its operating cycle, which includes accounts receivable, inventory, and accounts payable. On the other hand, a longer cash conversion cycle may indicate inefficiencies in cash management or potential liquidity constraints. Crown Holdings' fluctuating cash conversion cycle over the years may reflect changes in its operational efficiency, working capital management, or business dynamics.